TA: Ethereum Likely Gearing For Lift-Off to $500: Why Rally Isn’t Over Yet
Ethereum corrected lower, but it found a strong support near the $ 465 level against the US Dollar. ETH price is currently rising and it is likely to climb further towards $ 500.
- Ethereum is showing a lot of positive signs and it is now well above the $ 465 support level.
- The price is trading above the $ 480 resistance and the 100 hourly simple moving average.
- There was a break above a major contracting triangle with resistance near $ 478 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise steadily towards the $ 495 and $ 500 levels in the near term.
Ethereum Price is Signaling More Upsides
Ethereum corrected lower below the $ 475 level, but the bulls were able to protect the $ 465 zone. ETH price seems to be forming a strong support base above the $ 465 level and the 100 hourly simple moving average.
The recent swing low was near $ 470 before the price climbed higher. There was a break above the $ 475 and $ 480 resistance levels. More importantly, there was a break above a major contracting triangle with resistance near $ 478 on the hourly chart of ETH/USD.
Ether price climbed above $ 485 and tested the $ 490 zone. It is currently consolidating gains and trading near the 23.6% Fib retracement level of the recent upward move from the $ 470 low to $ 489 high.
Source: ETHUSD on TradingView.com
The first major support is near the $ 480 level. It is close to the 50% Fib retracement level of the recent upward move from the $ 470 low to $ 489 high. On the upside, the $ 490 level is a short-term resistance. A clear break above the recent high could open the doors for more upsides towards the $ 495 and $ 500 levels. The next target for the bulls could be $ 520.
Dips Supported in ETH?
If ethereum starts a fresh decline from $ 490 or $ 495, it is likely to find support near $ 480. The first major support below $ 480 is near the $ 472 level since it is close to the 100 hourly simple moving average.
The main support sits at $ 465. A successful close below the $ 465 support level could start a substantial decline and ether might drop towards the $ 450 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level – $ 470
Major Resistance Level – $ 485